Business Model Canvas

Question 1

What is the business model canvas

Answer 1

A template for mapping how businesses create and capture value through an integrated activity system

Question 2

What does a business model do?

Answer 2

• It offers a firm-centric, yet boundary-spanning, holistic view of how a firm conducts its business;
• It articulates the logic through which the firm creates value by exploiting business opportunities;
• It describes the interlinked activities in which the firm excels;
• It identifies the unit of business, or the individual transaction through which value is delivered to the customer;
• It reveals how the firm solves the value capture problem.

Question 3

First 5 Elements of BMC

Answer 3

Customer segments

Value proposition

Channels

Customer relationships

Revenue streams

Question 4

Last 4 Elements of BMC

Answer 4

Key resources: Which assets form the indispensable infrastructure for my business?

Key activities: Which activities do I need to execute excellently to maximize customer value?

Key partners: Given that I do not want to own all the assets I use, who do I need to team up with?

Cost structure: Which fixed costs are associated with the assets I own, and which variable costs with the activities I perform?